Customers are feeling uncertain over the latest base rate changes; however, research from Moneyfacts has shown the increase in the base interest rate had been already taken into consideration by most lenders - well in advance of the change.
The research shows an average increase of 0.18% since January this year for fixed-rate mortgages and notes that the substantial growth since the start of 2018 is a strong indication most providers had predicted a rise, even though they were unsure of when this would take place. Consequently, 72% of mortgage rates had already factored in the 0.25% rise. The average fixed-rate mortgage stands at 2.53%, an increase of 0.3% over the last 12 months.
Donna Murray, founder and mortgage adviser at GreenShoots Financial said:
“Customers are of course concerned at the impact on their short and long-term finances and if their current mortgage deals are coming to an end should look to re-mortgage as soon as possible. These increases in advance of the Bank of England rise reiterates the importance of reviewing products to capture the best possible deals.
Nevertheless, there are still several fantastic options for customers to snap up the most cost-effective and secure products, and it is our job to make sure they are aware of all the available possibilities.”
Since the Bank of England rise a few banks and building societies have confirmed increases to variable rates, including Standard Variable Rates. However, competition in the mortgage market could see many lenders holding off any significant rises for the next few weeks and months.
You can get ahead of the game and quickly check how rates will affect you by using our mortgage calculator. Either way this is a great opportunity to review your mortgage to ensure you are not paying more than you need. Get in touch with us to find out more.